Why Financial Advice Matters During Divorce

Friday 30 May, 2025

Divorce Financial Support and Guidance from Lonsdale Financial Planners

Divorce is one of the most emotionally and financially challenging experiences anyone can face. It marks the end of one chapter and the beginning of another. During such a turbulent time, it is completely understandable to feel overwhelmed.

Amid the emotional strain, the many financial decisions that must be made can easily feel daunting or even impossible to manage. This is where the support of a professional, understanding financial adviser can be invaluable.

At Lonsdale Services, we recognise not only the complexity of the financial landscape during divorce but also the emotional toll it can take and we are here to help our clients navigate with clarity and compassion.

When to Seek Financial Advice During Divorce

Ideally, financial advice should be sought as early as possible in the divorce process. As soon as the decision to separate has been made, it is wise to begin considering the financial implications and seeking guidance from a qualified financial adviser.

This early engagement ensures that both parties are equipped with a clear picture of their current financial position, enabling more informed decisions throughout negotiations. Whether you are planning to engage in mediation, pursuing a collaborative divorce, or entering court proceedings, a financial planner can provide you with essential insights before key decisions are made.

It is especially important not to wait until a settlement is finalised before seeking advice, as many financial outcomes can be difficult or even impossible to alter later on.

Understanding the Financial Aspects of Divorce

Divorce has far-reaching financial consequences, some of which may not be immediately obvious. The division of assets typically includes not just the family home, savings, and investments, but also pensions, an area that is often misunderstood or overlooked.

According to the Pensions Policy Institute, fewer than 15% of couples consider pensions when dividing assets, despite pensions often being one of the most significant assets in a marriage.

It is essential to understand how property, personal belongings, joint accounts, business interests, and any outstanding debts will be treated. Spousal maintenance and child support obligations must also be carefully factored into future budgeting.

Furthermore, there are tax implications to consider, such as Capital Gains Tax when transferring assets, which can vary significantly depending on the timing of the divorce and the nature of the asset in question.

Future financial planning is another critical aspect. Life post-divorce may require new budgeting strategies, revised retirement plans, and updated financial goals. Ensuring long-term financial security and making well-informed decisions about your future is just as important as managing the short-term consequences of the separation.

How Lonsdale Can Help

At Lonsdale Services, our experienced financial planners provide holistic financial advice tailored to the unique needs of individuals going through divorce. We know that no two situations are the same. Whether you have children to consider, own a family business, or are approaching retirement, we take the time to understand your circumstances and work with you to create a clear, structured plan for the road ahead.

We work to help you fully understand the financial settlement being proposed and its implications over the short, medium and long term. We can also help you to assess the value of different types of assets, including pensions, which often require careful analysis and may benefit from expert input through a Pension Sharing Order or Pension Attachment Order.

Once a settlement has been agreed, we assist with implementing the financial changes, whether that involves managing pension transfers, setting up new investment strategies, or ensuring you have adequate protection in place.

Our advice is always independent and impartial, and we are authorised and regulated by the Financial Conduct Authority (FCA), giving you the peace of mind that your best interests are at the heart of everything we do.

Providing Reassurance During Difficult Times

We understand that during divorce, the financial matters are deeply personal. The loss of shared goals, uncertainty about the future, and concerns about children or family stability can weigh heavily.

That’s why our approach is never clinical or detached. Our advisers offer a calm, compassionate presence alongside expert financial knowledge. We take pride in helping clients rebuild their financial confidence and find clarity when everything else may feel unclear.

You don’t have to go through this process alone. With the right support, it is entirely possible to emerge from divorce with your finances in order, your future plans intact, and the peace of mind that comes from knowing you are making informed choices.

Read more about Divorce & Separation on Money Helper.

Moving Forward with Confidence

Whether your divorce is amicable or contested, straightforward or complex, early and professional financial advice can make a meaningful difference to your outcome and your peace of mind.

Stewart Sims-Handcock, Chartered Financial Planner & IFA in Ringwood, said:

“At Lonsdale Services, we are here to provide a steady hand through the financial decisions you’ll face, empowering you to look ahead with confidence. If you are navigating divorce and uncertain about your next financial steps, we invite you to speak with one of our experienced financial planners today.”

Please note: This article is for information only and does not constitute individual financial advice. A pension is a long-term investment not normally accessible until age 55 (57 from April 2028). The value of your investments (and any income from them) can go down as well as up which would have an impact on the level of pension benefits available. The tax implications of pension withdrawals will be based on your individual circumstances, tax legislation and regulation which are subject to change. The Financial Conduct Authority does not regulate tax advice.

Need financial planning advice?

If you would like a free initial financial planning review, complete the form below, or contact our St Albans, Barnet, Harpenden, Leeds & Bradford, Stafford, Ringwood, Ware, Wimbledon or Chippenham office.